SCME[2013] No. 698

All units concerned:
     The Implementation Opinions on Carrying out Global Maintenance Services in China (Shanghai) Pilot Free Trade Zone, as approved by Shanghai Municipal Commission of Commerce, Shanghai Municipal Commission of Economy and Informatization, Shanghai Customs, Shanghai Entry-Exit Inspection and Quarantine Bureau, and China (Shanghai) Pilot Free Trade Zone Administration, are hereby issued for your compliance and implementation.

                                                                Shanghai Municipal Commission of Commerce
                                  Shanghai Municipal Commission of Economy and Informatization
                                                                                                               Shanghai Customs 
                                                    Shanghai Entry-Exit Inspection and Quarantine Bureau
                            China (Shanghai) Pilot Free Trade Zone Administration
                                                                                                                 
                                                                                                      September 28, 2013

Implementation Opinions on Carrying out Global Maintenance Services in China (Shanghai) Pilot Free Trade Zone

To boost the construction of China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the “Pilot Zone”), promote the cluster development of the advanced manufacturing industry and the high-end trade service industry, and regulate the administration of the global maintenance services provided by enterprises in the Pilot Zone (hereinafter referred to as “maintenance services”), the following implementation opinions are offered in terms of service definition, enterprise access, customs supervision, and inspection and quarantine, among others:
I. Service Definition
1. In these Opinions, “maintenance services” means the testing and maintenance business activities of enterprises in the Pilot Zone for domestic and overseas goods with damaged parts, failures in certain functions, or defects, and “maintenance goods” includes goods under maintenance, goods already maintained, bonded materials and parts for maintenance use, and damaged parts replaced in maintenance.
II. Enterprise Access
2. The administrative department of the free trade zone shall be fully responsible for the administration of global maintenance services within its jurisdiction. In approving projects, it shall adhere to the principle of “high-tech, high value-added, and pollution-free” on the premise of implementing the related export and import policies and effectively controlling environmental risks.   
3. Enterprises providing maintenance services must be independent corporate enterprises registered in the Pilot Zone, have registered with the administrative department for industry and commerce, obtained a corresponding business scope and met the inspection and supervision conditions prescribed by the commodity inspection, customs, and other authorities, and have business premises in the Pilot Zone for providing corresponding services, and have a high degree of integrity and a sound management system.
III. Customs Supervision
 4. The customs shall conduct effective supervision over maintenance goods, and, in principle, ensure that maintenance goods “go back to where they came from.” Maintenance goods which enter the Pilot Zone from abroad and leave China after maintenance shall be subject to bonded supervision. Maintenance goods which enter the Pilot Zone from any other place in China and leave the Pilot Zone after maintenance shall be taxed according to the cost of the consumed bonded materials and parts and the maintenance charges (including testing fees). For maintenance goods which enter the Pilot Zone from any other place in China, no customs declaration forms for export tax rebate shall be issued.
5. For goods to be maintained and goods already maintained which enter or leave the Pilot Zone, customs declaration shall be made in the manner of “repair objects.” For the bonded materials and parts used by enterprises for maintenance purposes and the damaged parts replaced in maintenance, customs declaration shall be made in a relevant manner for processing trade according to the actual circumstances.
6. Maintenance goods of enterprises must be transported out of China or the Pilot Zone during the period specified by the customs. For goods entering the Pilot Zone from abroad which, after maintenance, need to be imported and cannot be transported out of China for some reason, the customs shall supervise such goods according to the relevant provisions on imported goods.
7. The damaged parts replaced from maintenance goods entering the Pilot Zone from abroad shall be transported out of China in principle; and if it is impossible to do so, the customs shall deal with such parts by referring to the relevant provisions of the Notice of the General Administration of Customs, the Ministry of Environmental Protection, the Ministry of Commerce and the General Administration of Quality Supervision, Inspection and Quarantine on Issues Concerning the Disposal of Leftover Materials, Waste and Defective Products Generated in Export Processing Zones Outside Such Zones (GAC [2009] No. 172). For the used parts and damaged parts generated from maintenance goods entering the Pilot Zone from any other place in China, the customs shall conduct verification and clearance according to the relevant provisions.
IV. Inspection and Quarantine
8. For all maintenance goods entering the Pilot Zone from abroad, the inspection and quarantine institutions shall conduct inspection and supervision by referring to the rules for the administration of used electromechanical products.
9. For enterprises providing maintenance services in the Pilot Zone for goods entering the zone from abroad, the inspection and quarantine institutions shall adopt the inspection and supervision model of “simple approval + entry verification + periodic supervision,” i.e. approval procedures (simplified filing) may apply to the used electromechanical products entering China for maintenance use; low-risk used electromechanical products entering China for maintenance use may be exempted from pre-shipment inspection overseas; and inspection and quarantine institutions replace the batch arrival inspection of used electromechanical products entering China for maintenance use with periodic supervision of enterprises.
10. Maintenance goods entering the Pilot Zone from any other place in China are not subject to inspection supervision. 
11. To improve administrative efficiency and accelerate clearance by inspection and quarantine institutions, enterprises providing maintenance services in the Pilot Free Trade Zone shall submit information on goods entering and exiting the zone as required for providing relevant services to the inspection and quarantine institutions for record.
V. Miscellaneous
12. These Opinions shall come into force on the date of promulgation. The detailed rules for the implementation of these opinions shall be the specific administrative measures issued by the relevant functional departments.